Chapter 6 – Group Disability Income Insurance Review Questions

Which of the following is NOT a typical employee requirement for being included in a group disability insurance plan?

A person who was receiving group long-term monthly disability benefits dies before the benefit period ends. This contract continues paying the monthly benefit to the deceased person’s spouse for three months. This type of benefit is called a _____ benefit.

When monthly benefits are paid to an employee under a group disability plan, the benefits are not taxed as current income when the premiums have been paid by:

Which of the following correctly describes a common way for the short-term disability policy’s elimination period to apply?

While short-term disability plans vary in the percentages of income actually paid to a disabled employee, they are generally based on _____ income.

At the beginning of a disability, both short- and long-term disability plans most frequently use what definition of total disability?

Under group long-term disability plans, the elimination periods for accidents and illnesses are usually:

Under its group long-term disability plan, a certain employer wants to pay a monthly benefit equal to 70% of each employee’s monthly earnings, up to $4,000, and 60% of all earnings over $4,000. This arrangement is:

A certain insurer agrees to pay a rehabilitation benefit under a group long-term disability plan for a disabled insured who is returning to work on a trial basis. This particular insurer determines the rehabilitation benefit by reducing the total disability benefit by 80% of monthly earnings during the trial period. The monthly benefit for total disability is $3,000. The monthly earnings during the trial period equal $2,000. The amount of the rehabilitation benefit is:

When a group long-term disability plan pays a residual benefit, this benefit is generally only paid when the employee’s post-disability earnings are at least how much less than the pre-disability earnings were?